There is growing concern about German secondary aluminium producers, which are under severe pressure as the economic downturn takes a hefty toll on the country.
“The financial and economic crisis is keeping Germany in check, with markets feeling the strain of lower LME prices and demand,” Ralf Schmitz, of German trade association Verein Deutscher Metallhaendler, wrote in a report this month for the Bureau of International Recycling.
In recent weeks several market participants have voiced fears, particularly about the German companies that produce high levels of liquid secondary aluminium as sales grind to a halt amid non-existent demand.
“When foundries are working a lot they need extra liquid because they don’t have enough capacity to melt…now that they are not so busy they don’t require the liquid any more,” a market participant told.
